Date: September 5, 2025
To: New York State Chartered Banks and Credit Unions and Other Interested Stakeholders
Re: Request for Information on Consumer Accounts and Fees, Program and Regulatory Compliance Costs and Communications
Earlier this year, the New York State Department of Financial Services (the “Department” or “DFS”) drafted regulations that would establish new prohibitions on harmful overdraft practices, enhance customer communications, and bar banking organizations from processing transactions in a manner meant to maximize their fees.1 The Department took a data-driven approach to developing the regulation, considering the existing regulatory landscape, market trends, responses to a request for information sent to banking organizations in 2022 (“2022 RFI”), and a subsequent 2023 Department-issued overdraft study. 2
The Department released draft regulations for a pre-proposal comment period (the “Pre-Proposal”).3 Comments received from some banking organizations asserted that the Pre-Proposal would be costly or limit availability of overdraft protections for customers, yet organizations did not provide data to support their assertions. As a result, DFS is now soliciting further information on overdraft and insufficient funds-related policies, procedures, costs, and revenues. DFS is particularly interested in submissions from banking organizations that commented on the Pre-Proposal that include data substantiating any statements made in comments relating to costs, feasibility, service availability, and overall impact on business.
Responses are voluntary but must be submitted by Monday, October 20, 2025, so that the Department can review and analyze the data in a timely manner.
DFS expects that portions of RFI submissions may contain sensitive non-public information. In the process of proposing and adopting regulations implementing Banking Law § 9-y(2), DFS may, in an aggregated or anonymized form, refer to any information provided by respondents in publications mandated by the State Administrative Procedure Act. DFS will treat any confidential supervisory information in accordance with law. A respondent may include with its response a request that DFS withhold designated portions of its submission from publication under the Freedom of Information Law (“FOIL”), Public Officers Law § 87(2)(d), pertaining to the protection of trade secrets or commercially sensitive information. If DFS receives a FOIL request for the submitted material, DFS will assert all applicable exemptions under FOIL and notify the submitter of any such request. Please note that if relying on an exemption to FOIL disclosure for confidentiality purposes, the respondent should seek the advice of counsel to ensure sufficiency.
DFS encourages respondents to be as specific as possible in their responses. Please include numerical responses where appropriate. Access the Request for Information on Consumer Accounts and Fees, Program and Regulatory Compliance Costs and Communications Excel spreadsheet. DFS seeks responses by October 20, 2025, to [email protected]. Please state “Request for Information on Consumer Accounts and Fees, Program and Regulatory Compliance Costs and Communications” in the subject line.
If you have any questions about the above, please email [email protected].
1 The regulations were drafted to implement Chapter 556 of the Laws of New York of 2023.
2 Available at https://www.dfs.ny.gov/system/files/documents/2023/07/rpt_20230714_consumer_fee_practices_nys.pdf.
3 Before filing a proposed regulation for publication in the State Register for a formal comment period pursuant to the New York State Administrative Procedure Act, the Department provides a draft for review and comment by interested persons and the public, including, but not limited to, small businesses and local governments. Unless otherwise noted, the comment period extends for 10 days from the date of posting.